Nikkei set to rise, may touch 10,000, tankan eyed

A businessman talks on the phone in front of an electronic board displaying share prices outside a brokerage in Tokyo April 8, 2011.

TOKYO (Reuters) - The Nikkei benchmark is set to rise on Friday and may touch the 10,000 line for the first time since early May, helped by gains in U.S. stocks on positive economic data and on relief that Greece will avert an imminent default.

In the U.S., Midwest business activity showed surprising strength this month, lifted by a jump in new orders, the Institute for Supply Management-Chicago said.

In Europe, Greece's parliament approved measures to implement budget cuts and assets sales, making Greece eligible for financial aid to avoid a debt default.

Analysts also said major economic indicators from Japan as well as China may help investor appetite if figures are better than expected.

The Bank of Japan's tankan survey, which is due out 2350 GMT, is expected to show major manufacturers turned pessimistic about business conditions for the first time since the Lehman crisis in the second quarter as a devastating natural disaster in March damaged supply chains and hurt output, a Reuters poll showed.

The June tankan is expected to show the sentiment index for big manufacturers down 12 points to minus 6, but the companies' forecast for the September index is expected to come to plus 3 to show they are optimistic about the outlook.

"The Nikkei may touch 10,000 in early trade depending on the tankan data," said Hiroichi Nishi, general manager at SMBC Nikko Securities. "There is optimism in the market that stocks will gain in July, but for today, volume may be thin ahead of the weekend."

Analysts added that investors keep an eye on Chinese PMI data, which is scheduled to be out at about 0100 GMT.

A median forecast of 51.3 suggests growth in Chinese factories cooled to 10-month lows in June, adding to evidence that the world's second-biggest economy is easing under monetary policy tightening and a power shortage.

Meanwhile, foreign securities firms placed net buy orders of 17.0 million Japanese shares before the market opened, traders said.

Nikkei futures in Chicago ended at 9,890, 80 points higher than their Osaka close of 9,810.

The benchmark Nikkei .N225 closed Thursday up 0.2 percent at 9,816.09. The broader Topix .TOPX rose 0.6 percent to 849.22.

STOCKS TO WATCH

--Toyota Motor Corp (7203.T)

Toyota will continue to slash costs in a bid to swing back to an operating profit on a parent-only basis, the Nikkei business daily reported.

--Mitsubishi UFJ Financial Group (8306.T)

MUFG raised its stake in Morgan Stanley (MS.N) to 22.4 percent by converting its preferred shares into common stock, saving the U.S. bank some $200 million in a dividend payment that would otherwise have been due in July.

--Tokyo Electric Power Co (9501.T)

Tepco will pay people displaced by the Fukushima Daiichi nuclear meltdown up to 300,000 yen each in a second round of provisional compensation expected to total 40-50 billion yen, the Nikkei business daily reported.

--Mitsubishi Corp (8058.T), Toyota Tsusho Corp (8015.T)

Japan Airlines Corp (JAL) (JALFQ.PK) will enter the low-cost carriers market through a joint venture with Australia's Jetstar group, and launch domestic flights next year, in which Mitsubishi and Toyota Tsusho have been invited to invest in, Nikkei reported.

The venture will be capitalized at 10-20 billion yen ($123.8-$247.7 million), with JAL and Jetstar, a Qantas Airways (QAN.AX) subsidiary, holding 30 percent stakes each, the daily said.

(Reporting by Ayai Tomisawa; Editing by Edwina Gibbs)